The mutual fund industry has numerous options for investors. Among the many options, regular and direct mutual funds are one. Investors often get stuck when choosing between the two. Some even fail to make the right selection. Knowing the difference between the two can go a long way in getting you sorted while selecting. A regular mutual fund (bought from the distributor) will have several costs, such as distributor commission, fund management fees, etc. As a result, the returns are lower compared to direct mutual funds that you buy straight from the mutual fund company. Both funds are managed by the fund manager. However, regular fund investors can receive custom advisories on mutual funds to buy, the market scenario and other critical information.